Chairman of First Bank of Nigeria (FBN) Holdings and majority shareholder, Femi Otedola, has increased his stake in the financial company to 13.15 per cent.
FBN Holdings notified the capital market of the development in a statement on Thursday.
According to the statement, Otedola increased his stake after purchasing 534,094,407 shares at the cost of N16.02 billion between September 23 and 25.
The acquisition raised his interest in FBN Holdings from 11.67 per cent (4,187,602,704 shares) to 13.15 per cent (4,721,697,111 shares), worth N136.9 billion as of Wednesday.
It also expands the gap between Otedola and Barbican Capital Limited, FBN Holdings’ second majority investor with an 8.67 per cent stake, which represents 3,110,400,619 shares, valued at N90.2 billion as of Wednesday.
There has been contention over the exact shares Barbican Capital, owned by Oba Otudeko holds in FBN Holdings.
Barbican Capital had in a lawsuit (no. FHC/L/CS/1172/24) against FBN Holdings, claimed that about 5,386,397,202 units of shares representing 15.1 per cent of FBN Holdings were acquired over the years and at different times.
The firm claimed that its shares purchases and dates of issue, were adequately captured by Meristem Registrar and Probate Service Ltd, the financial institution’s appointed registrars, and further acknowledged in the Central Securities Clearing System (CSCS), which
CSCS is Nigeria’s central securities depository (CSD) licensed to carry on the depository, clearing and settlement of all transactions in the country’s capital market.
However, in response, FBN Holdings said Barbican Capital only notified the financial institution on July 7, 2023, that about 4,770.269,843 units of shares were acquired and also told the court that the Central Bank of Nigeria (CBN) was only able to verify 3,110,400.619 units of shares out of the 4,770,269,843 shares Barbican Capital claimed it acquired.
FBN Holdings said CBN’s inability to verify all the shares was due to insufficient documents, as Barbican Capital allegedly refused to submit documents requested by the apex bank for the verification process of the shares acquired.
The financial institution further said CBN guidelines for ‘Licencing and Regulation of Financial Holding Companies (FHCs) in Nigeria’ — issued pursuant to the Central Bank Act of 2007 and Banking and Other Financial Institutions Act 2004 — mandates financial holding companies to seek approval from the CBN before the purchase of an FHC’s shareholding of 5 percent and above; or if the share units are purchased on the secondary market.
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Chairman of First Bank of Nigeria (FBN) Holdings and majority shareholder, Femi Otedola, has increased his stake in the financial company to 13.15 per cent.
FBN Holdings notified the capital market of the development in a statement on Thursday.
According to the statement, Otedola increased his stake after purchasing 534,094,407 shares at the cost of N16.02 billion between September 23 and 25.
The acquisition raised his interest in FBN Holdings from 11.67 per cent (4,187,602,704 shares) to 13.15 per cent (4,721,697,111 shares), worth N136.9 billion as of Wednesday.
It also expands the gap between Otedola and Barbican Capital Limited, FBN Holdings’ second majority investor with an 8.67 per cent stake, which represents 3,110,400,619 shares, valued at N90.2 billion as of Wednesday.
There has been contention over the exact shares Barbican Capital, owned by Oba Otudeko holds in FBN Holdings.
Barbican Capital had in a lawsuit (no. FHC/L/CS/1172/24) against FBN Holdings, claimed that about 5,386,397,202 units of shares representing 15.1 per cent of FBN Holdings were acquired over the years and at different times.
The firm claimed that its shares purchases and dates of issue, were adequately captured by Meristem Registrar and Probate Service Ltd, the financial institution’s appointed registrars, and further acknowledged in the Central Securities Clearing System (CSCS), which
CSCS is Nigeria’s central securities depository (CSD) licensed to carry on the depository, clearing and settlement of all transactions in the country’s capital market.
However, in response, FBN Holdings said Barbican Capital only notified the financial institution on July 7, 2023, that about 4,770.269,843 units of shares were acquired and also told the court that the Central Bank of Nigeria (CBN) was only able to verify 3,110,400.619 units of shares out of the 4,770,269,843 shares Barbican Capital claimed it acquired.
FBN Holdings said CBN’s inability to verify all the shares was due to insufficient documents, as Barbican Capital allegedly refused to submit documents requested by the apex bank for the verification process of the shares acquired.
The financial institution further said CBN guidelines for ‘Licencing and Regulation of Financial Holding Companies (FHCs) in Nigeria’ — issued pursuant to the Central Bank Act of 2007 and Banking and Other Financial Institutions Act 2004 — mandates financial holding companies to seek approval from the CBN before the purchase of an FHC’s shareholding of 5 percent and above; or if the share units are purchased on the secondary market.
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